Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/55761
PIRA download icon_1.1View/Download Full Text
Title: Joint inventory and pricing coordination with incomplete demand information
Authors: Lu, Y
Song, M 
Yang, Y
Issue Date: Apr-2016
Source: Production and operations management, Apr. 2016, v. 25, no. 4, p. 701-718
Abstract: In retailing operations, retailers face the challenge of incomplete demand information. We develop a new concept named K-approximate convexity, which is shown to be a generalization of K-convexity, to address this challenge. This idea is applied to obtain a base-stock list-price policy for the joint inventory and pricing control problem with incomplete demand information and even non-concave revenue function. A worst-case performance bound of the policy is established. In a numerical study where demand is driven from real sales data, we find that the average gap between the profits of our proposed policy and the optimal policy is 0.27%, and the maximum gap is 4.6%.
Keywords: Incomplete demand information
Inventory and pricing coordination
K-approximate convexity
Publisher: Wiley-Blackwell
Journal: Production and operations management 
ISSN: 1059-1478
EISSN: 1937-5956
DOI: 10.1111/poms.12504
Rights: © 2015 Production and Operations Management Society
This is the peer reviewed version of the following article: Lu, Y., Song, M., & Yang, Y. (2016). Joint inventory and pricing coordination with incomplete demand information. Production and operations management, 25(4), 701-718, which has been published in final form at https://doi.org/10.1111/poms.12504. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
Appears in Collections:Journal/Magazine Article

Files in This Item:
File Description SizeFormat 
Song_Joint_Inventory_Pricing.pdfPre-Published version333.25 kBAdobe PDFView/Open
Open Access Information
Status open access
File Version Final Accepted Manuscript
Access
View full-text via PolyU eLinks SFX Query
Show full item record

Page views

278
Last Week
0
Last month
Citations as of Apr 14, 2025

Downloads

95
Citations as of Apr 14, 2025

SCOPUSTM   
Citations

17
Last Week
0
Last month
Citations as of Nov 28, 2024

WEB OF SCIENCETM
Citations

14
Last Week
0
Last month
Citations as of Jun 5, 2025

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.